Executives in all segments of fresh produce continue to grapple with changes in the industry, including more frequent extreme weather events, high prices impacting suppliers and consumers, an evolving labor pool, and the integration of artificial intelligence, among other trends. Here’s what they’re thinking at the start of 2025 and a look at the months ahead.
Lingering effects of the pandemic
The slow recovery of discretionary spending, years after the pandemic, remains a challenge for the foodservice sector.
“Consumers are still price-sensitive and dining out less frequently, with earlier mealtimes like breakfast and lunch becoming more popular,” says Jin Ju Wilder, vice president of marketing and business development at Vesta Foodservice BB #:125924 in Los Angeles, CA. “Until we see full tourism recovery and more return-to-office work, we likely won’t reach prepandemic growth in foodservice.”
The transportation industry is also still trying to recover its equilibrium.
“Overall, the transportation and logistics industry was in a downward descent for 2024,” says Marshall Kipp, president and CEO of Visalia, CA-based Advanced Transportation Services or ATS BB #:120506. “Unfortunately, there’s an excess of supply and not enough demand for the amount of capacity currently in the marketplace.”
Kipp expects these trends to continue. “I believe the economy will influence the transportation, shipping, and logistics sector in 2025, especially with regard to fresh produce. Rates are at an all-time low—until we can see some relief at the consumer level to help move more packages, we may not see much movement.”
Fred Plotsky, president of Cool Runnings, Ltd. BB #:125423 in Kenosha, WI, believes business is still down compared to what it was before the pandemic, largely because of inflation pressures. “Business is OK, but I’ll call it flat,” he concedes. “It’s not so lopsided that people are getting crushed.”
He believes the number of truckers has returned to close to pre-Covid levels after expanding during the pandemic, when truckers were trying to grab the high rates.
But, he emphasizes, “Things are so expensive, still, and wages haven’t kept up as a whole. No matter who’s in charge [politically], the industry will take a little bit of time to rebound from these inflationary pressures.”
“The carriers that have held on during this downturn are so resilient,” praises Kipp, “having to pivot on traffic lanes to try and remain afloat during these trying times. The biggest challenges the industry faces are regulations and the economy. If we can get a break on the regulations, especially here in California, and a better economy, there may be some light at the end of the tunnel.”
This is an excerpt from the cover feature of the January/February 2025 issue of Produce Blueprints magazine. To read the whole issue, click here: https://www.producebluebook.com/#january-february-2025-produce-blueprints/1/
Executives in all segments of fresh produce continue to grapple with changes in the industry, including more frequent extreme weather events, high prices impacting suppliers and consumers, an evolving labor pool, and the integration of artificial intelligence, among other trends. Here’s what they’re thinking at the start of 2025 and a look at the months ahead.
Lingering effects of the pandemic
The slow recovery of discretionary spending, years after the pandemic, remains a challenge for the foodservice sector.
“Consumers are still price-sensitive and dining out less frequently, with earlier mealtimes like breakfast and lunch becoming more popular,” says Jin Ju Wilder, vice president of marketing and business development at Vesta Foodservice BB #:125924 in Los Angeles, CA. “Until we see full tourism recovery and more return-to-office work, we likely won’t reach prepandemic growth in foodservice.”
The transportation industry is also still trying to recover its equilibrium.
“Overall, the transportation and logistics industry was in a downward descent for 2024,” says Marshall Kipp, president and CEO of Visalia, CA-based Advanced Transportation Services or ATS BB #:120506. “Unfortunately, there’s an excess of supply and not enough demand for the amount of capacity currently in the marketplace.”
Kipp expects these trends to continue. “I believe the economy will influence the transportation, shipping, and logistics sector in 2025, especially with regard to fresh produce. Rates are at an all-time low—until we can see some relief at the consumer level to help move more packages, we may not see much movement.”
Fred Plotsky, president of Cool Runnings, Ltd. BB #:125423 in Kenosha, WI, believes business is still down compared to what it was before the pandemic, largely because of inflation pressures. “Business is OK, but I’ll call it flat,” he concedes. “It’s not so lopsided that people are getting crushed.”
He believes the number of truckers has returned to close to pre-Covid levels after expanding during the pandemic, when truckers were trying to grab the high rates.
But, he emphasizes, “Things are so expensive, still, and wages haven’t kept up as a whole. No matter who’s in charge [politically], the industry will take a little bit of time to rebound from these inflationary pressures.”
“The carriers that have held on during this downturn are so resilient,” praises Kipp, “having to pivot on traffic lanes to try and remain afloat during these trying times. The biggest challenges the industry faces are regulations and the economy. If we can get a break on the regulations, especially here in California, and a better economy, there may be some light at the end of the tunnel.”
This is an excerpt from the cover feature of the January/February 2025 issue of Produce Blueprints magazine. To read the whole issue, click here: https://www.producebluebook.com/#january-february-2025-produce-blueprints/1/
